Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • LMP’s net rental income rises 14% YoY to GBP 219m for six-month period ended 30 September 2025.
  • Dividend for first quarter increased 7% to 3.05p, second quarter maintains same level.
  • The company’s occupancy reached 98%, average lease term stood at 17 years and rent collection at 99.4%.

London Metric (LSE:LMP)  is a FTSE 100 REIT that holds and manages a range of properties. The company aims to provide stable income while serving the needs of occupiers. Its activities include supporting occupiers, communities, and stakeholders in responding to changing conditions.

Rental Income and Dividend

Today (7 October 2025), the company has provided a trading update ahead of its half-year results for the six months ended 30 Sep 2025. Net rental income is expected to reach GBP 219m, up 14%, with an EPRA cost ratio of 7.7%.

Management stated, “Our confidence in delivering earnings growth has allowed us to increase the first quarter dividend by 7% to 3.05 pence, and we will declare the same level of dividend for the second quarter, putting us well on track for our eleventh year of dividend progression.”

Occupancy remained at 98% with average lease terms of 17 years, and rent collection reached 99.4%. Annualised like-for-like income growth rose to 5.2%, while income from the top ten tenants fell to 33% of total rent from 38% last year.

Asset Sales and Acquisitions

During the period, LondonMetric sold 25 properties for GBP 185m, in line with book values. Since the July update, eleven properties were sold in ten transactions for GBP 79.6m. These comprised five former LXi assets sold for GBP 55.6m, including a 125,000 sq ft Sainsbury’s in Middlesbrough; five urban logistics properties in the Midlands, Newcastle, Perth, and Bedford for GBP 21.3m, three of which were former ULR assets; and a Wickes DIY store in Carlisle for GBP 2.7m (LondonMetric share). Approximately GBP 100m of additional sales are under offer. On the acquisition side, the company added GBP 1.2bn of assets, with GBP 83m completed and GBP 65m currently under offer, covering sale-and-leasebacks, development funding, portfolio acquisitions, and M&A transactions.

Asset Management and Rent Growth

Since 31 Mar 2025, 150 asset initiatives have added GBP 9.4m p.a. in contracted rent, up from GBP 3.0m p.a. in July. Rent reviews on 122 assets contributed GBP 6.3m p.a., with average uplifts of 18%. Logistics reviews averaged 17%, while open market reviews generated 27%. Lettings and regears across 28 properties added GBP 3.1m p.a., including four former ULR assets with 28% average uplifts.

Ongoing developments include a 21,000 sq ft M&S food store in Blackpool and a 390,000 sq ft M&S distribution centre in Avonmouth, due to complete next summer.

Debt Refinancing and Integration

The company repaid GBP 349m of former LXi secured facilities and a GBP 170m ULR term loan. These were partly replaced with a GBP 180m unsecured three-year term loan and a GBP 150m US private placement with 5.5-year average maturity. Total available debt facilities stand at GBP 0.7bn.

Three new colleagues from ULR joined the company during the period, and system integration is nearing completion. Finance functions, including rent collection, have been internalised and are expected to be fully integrated by year-end.

Share Performance

The company is currently trading at GBX 182.60 up by 0.17% from the last close GBX 182.30.